hypothetically speaking--take these two scenarios

1) buy a home for 400k in a nice area, and live in it
2) buy a duplex for 400k in a not so nice area, live in one, rent the other one
3) buy a triplex/quad for 500k in a really not so nice area, live in one, rent the others

what would you do.

 

well 1 involves little to no hassle so I would go with that

with the others you gotta worry about people paying for their shit

 

1.

 

if ur not much on a strict budget plan, i would go with #1. if the budget is getting kinda tighter and you need to try and save wherever you can, i would go with #2.

i would not do #3. "really not so nice" neighborhoods almost always mean tenants that are relatively poor and having a hard time as it is to pay bills. the risk of having to deal with late rent payments is too stressful. A LOT of them dont even have checking accounts. their credit is also usually either bad or not enough. #3 is a headache if its in a bad neighborhood. my parents have a 6unit apartment in south central LA and ive helped them try to manage it and with the little i've personally seen and dealt with, is too stressful enough. i cant imagine having to deal with that shit all by myself. so not worth it.

 

In just having to deal with roommates for the last few years, and being the one that is required to collect the money and pay the bills, I'll tell you that collecting money from people is just as bad as pulling teeth. It's amazing that people remember everything about being owed money, but the second they owe money, they forget all about it until you ask them for the 25th time.

 

and then you're the asshole cuz you want the money to pay for the roof over their head

my roommate is gone, i highly doubt i will ever have another. it's not worth it, i'm the bad guy cuz i want my money

 

depends if short term or long term